Outline for a New M&A Valuation

Practice Area for a Law Firm

Michael A. S. Guth, Ph.D., J.D., Practice Leader

This outline describes the M&A package that our law firm would normally prepare when retained to find targeted acquisitions for a client. If we are retained by a seller, then this outline describes the information on our client that we would present to potential buyers. Any potential buyer will have the standard set of key questions that must be satisfactorily answered before the buyer will agree to the acquisition.

1. Is the target company gaining, holding, or losing financial ground?

2. What is the market value of the target?

3. How much should the buyer pay?

4. What will the purchase ultimately cost?

5. What is the best way to structure payment?

6. What is the most appropriate amount and form of financing?

7. How will the company perform in the future?

8. What is the projected ROI (return on investment) for the buyer?

To assist the buyer, we will develop a sequential, task-specific presentation that answers these questions. The outline for our presentation should follow the six main stages of an acquisition: financial analysis, valuation, purchase price negotiation, deal structuring, financing, and closing.

First, we must construct, with the client